Saffron exports in 2021, compared to 2020, decreased by 4 per cent. With the supply of last year's surplus saffron product stored in warehouses, the upward trend in saffron prices stopped. Saffron is a strategic agricultural product of Iran and is exported to about 60 countries. In the 12 months of 2021, compared to last year (2020), exports have decreased. In 2021, more than 303 tons of saffron were exported from Iran, which is 4 per cent less than in 2020, when 315 tons of saffron were exported.

Market has stabilised

The price of saffron has increased in recent months, but now with the supply of saffron stored in warehouses, the price of saffron in the market has almost stabilised. However, this product also has large domestic consumer markets apart from its export importance. Consumption in the domestic market has decreased due to the significant increase in the price of saffron in recent months. It has declined in recent months due to rising prices and declining purchasing power. In this way, the consumer buys less than before. On the other hand, there are market participants who say that production costs are increasing, which has significantly reduced the incentive for farmers to produce it. In recent days, the remaining saffron in the warehouses has been offered in the market, which finally led to the distribution of stored saffron in the market's price stability in the last 15 days.

If last year’s saffron is not marketed, the price of this product will be higher than the current price. Perhaps more than 150 tons of saffron were purchased and stored last year, which most consumers and foreign buyers prefer to buy this type of saffron. Due to the very high growth of saffron prices in the previous two months, buyers are not interested in purchasing saffron at this price; As a result, price growth has stopped, and price reductions are forecast.

Production dropped

In the coming months, due to the shortage of products, the price of saffron in the market is expected to increase, but we still have to wait and see the supply and demand in the market. According to the statistics announced by the Ministry of Jihad for Agriculture of Iran, last year we had 500 tons of saffron production, but this year the National Saffron Council, according to farmers, has announced that production has dropped by 50% due to drought conditions. This year, farmers are refusing to supply due to declining production to keep prices high and make up for some of the declines in production.

The current price of saffron has not changed compared to last week and the market is still in recession. Compared to the previous month, the price of saffron has increased. Compared to the previous month, the price increase of Iranian export Sargol saffron is 11.1 per cent. The price of Iranian Negin saffron is about 10.5 per cent compared to last month. The price of Iranian saffron is 7.7 per cent and the price of Iranian export saffron is about 5.7 per cent.

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